OKX: Investigation and explanation on the FLOKI pledge loan mechanism

OKX officially released "Investigation and explanation of FLOKI pledge loan mechanism issues", the content is as follows: Q1: Why is automatic currency exchange triggered when the risk rate of pledged currency is safe? What are the specific rules for automatic currency exchange? OKX's current mortgage lending is a C2C market that matches deposit users and borrowers. Based on the basic operating principle of 100% reserves, when the platform's borrowing amount/deposit amount reaches 100%, the platform will automatically trigger Coin exchange mechanism. The triggering of the automatic currency exchange mechanism depends on the amount of currency borrowed and deposited by all users on the entire platform, and has nothing to do with the pledge risk rate of a single user. When the automatic currency exchange is triggered, in order to reduce the risk of all platform borrowing users as soon as possible, gradient grading will be carried out according to the user's borrowing amount from large to small. The group of users with the highest borrowing amount will be prioritized for automatic currency exchange by the system. ; Q2: Why doesn’t OKX stop borrowing new loans to keep levels normal? When the amount of currency borrowed by the platform reaches the amount of currency deposited on the platform, the platform will stop new borrowing; the reason for triggering the automatic currency exchange this time: due to Floki's on-chain activities, a large number of currency depositing users have redeemed, and the user's currency deposits have decreased. The amount of coins has not increased, thus triggering automatic currency exchange; Q3: After reaching the automatic currency exchange baseline, will users who may trigger automatic currency exchange be notified in advance? Why didn't I receive the notification in time this time? After reaching the platform's automatic currency exchange baseline, the platform will notify users who may be triggered to automatically exchange their currency by email in advance. This time, due to the email system, the warning email for a small number of users was not reached in time. If you encounter the problem that the warning email is not reached in time, you can contact OKX customer service for feedback; Q4: Can product optimization be carried out in the future to help users know their own automatic currency exchange debt settlement tiers? In the future, OKX will further optimize the email and notification system to ensure that email warning notifications are issued in advance before automatic currency exchange is triggered. At the same time, the display of the mortgage loan page will be optimized to clearly inform users of the automatic currency exchange and liquidation steps.